Brazil’s Real Is The Most Overvalued Currency In The World

At least according to the “Big Mac Index” (full article here).The Big Mac Index, created by “The Economist” 25 years ago, has a new version, which takes into account not only the price of the sandwich but also GDP per capita of each country. Result: Brazil’s real is the world’s most expensive currency and is 149% above the dollar.Burgernomics puts Latin America on the spot. The Big Mac Index ranks Colombian peso 2nd, 108% above the U.S. dollar and suggests Argentina is not publicizing real rates of inflation. According to The Economist: “Argentina has been cooking the books: over the past decade, Big Mac prices there have, on average, risen by well over ten percentage points more each year than the official consumer-price index—a far bigger gap than in any other country.”